In the world there are a large number of various financial instruments that are designed to save and increase our funds. They are both relatively safe and risky. The first category includes a savings certificate. What is he like? What is the mechanism for working with it? All this will be considered in the article.
general information
Let's start with the definition. A savings certificate is a security that certifies the amount of the deposit that was made to the bank, as well as the right of its holder to receive funds at the specified time in the agreed amount. Such certificates may be registered or bearer rated. They can be stored at home or left for safekeeping in a bank.
Quite often, inexperienced people confuse certificates of deposit and savings. It should be understood that they have significant differences. For example, bearer certificates do not participate in the deposit insurance system, and if the bank bursts, the owner will not be able to return his money. Therefore, it is advisable to purchase these securities in reliable structures. For example, a savings certificate of Sberbank is quite attractive due to the combination of profitability and ease of withdrawal.
How to use securities?
Take advantage of this financial instrument by the power of any individual. But when applying for savings certificates, certain benefits are not provided for that exist when pensioners / students open deposits. However, this is offset by high returns. If the savings certificate provides for the issuance of cash to bearer, then it can be presented to another person. Such a security is easily inherited. There is no need to issue a will: if a security is kept in a bank, then to receive it, children must present a certificate of inheritance.
With a name certificate is a little more complicated. In the case of its transfer to another person, it is necessary to draw up an agreement on the assignment of claims, or, as professional financiers call it, an assignment. If the certificate is accepted as a gift, then it is considered the income of the new owner and is subject to 13% personal income tax.
On individual points
Bank savings certificates are considered as an alternative to regular deposits. They have an important advantage - higher percentages. But this is offset by a number of inconveniences that are not present when working with deposits. One such inconvenience is the lack of insurance. The likelihood that a reliable bank (for example, Sberbank) will be deprived of a license is very small, which is not the case with less reliable banks.
The certificate is convenient in that it can be used as a gift to relatives or friends. In this case, it is better to take a non-personal certificate. It can be left in a banking institution for safekeeping, this service is free. These securities are convenient for senior citizens due to the fact that they are easy to inherit. But, unlike the contribution, the savings certificate must be carefully stored. After all, if he becomes unusable or tears, you will have to conduct an examination. What can we say about the loss. In case of loss, it will have to be restored in court.
Let’s say a word about percent
The percentage depends on the amount deposited and the duration of the placement. Let's take Sberbank's savings certificate as an example . Interest from it will be compared with a possible profit from a simple deposit. The maximum placement period is three years, the minimum is only 3 months. As much as possible on a deposit in Sberbank you can earn 5.63%.
What about the certificate? If its cost does not exceed 50 thousand rubles, then you will have to be content with a small percentage - only 0.01. The deposit, without a doubt, wins. If you purchase a certificate worth up to a million rubles, then a person can count on a profit of 4.95 to 5.25%. This is already relatively comparable, although it has its own conventions. Already starting with an amount of one million rubles, of course, a savings certificate wins. Interest on it starts at 5.75% and ends at 7.1%. But the latter option is possible only for those who have a certificate in the amount of 100 million rubles.
Bearer Savings Certificate
This is a rather interesting and specific option, so it needs to be given extra attention. It is not possible to obtain this security (and indeed any savings certificate) in all branches of the bank. First you need to clarify where to go. You can do this by phone. Then the procedure will be as follows:
- Contact the unit that carries out operations with this type of securities. You must have a passport or other document with you that certifies your identity.
- Decide on the number of acquired certificates, their denomination and term. From this, as mentioned above, the received interest rate depends.
- Pay for the certificate in cash or funds that are stored in the selected bank.
- Get a savings certificate.
Why are they so popular?
An important advantage of savings certificates is that they help to overcome inflation. People are attracted to them by the liquidity property, that is, at any time after the end of the agreed period, the client can withdraw his money. It is for this property that the certificate is so highly regarded. But do not forget about the shortcomings. The certificate is a security, and if the financial institution that issued it goes bankrupt, the certificate holder will be left with nothing. Therefore, choosing a bank, you must be very careful and careful. If at least something is suspicious - it’s better not to take risks.
Why are there fans?
The financial instrument in question has a fairly large number of fans. What attracts people to savings certificates? Perhaps, first of all, it is necessary to mention such a moral factor as working with a security. Agree that having a security in the form of a certificate is much more prestigious than just a deposit. Also, its owner can contact a financial institution at any convenient time. The bank will not be able to refuse him, moreover, by law he is obliged to redeem a security on the day the client addresses. This distinguishes the situation in question from working with deposits very favorably.
And one more important point: in case of an early break, the client should not lose the earned interest that had been falling before. Although it will not be superfluous to verify the availability of this clause in the contract.
And another important moment! The certificate is a security. This means that it can be presented by the client to other banks or business partners in order to convince them of their solvency. A savings certificate can even be used as collateral for a loan. But if the paper is registered, then most likely you will have to contact a notary public to assure the transfer of ownership.
Conclusion
If you have a desire or you may need to use a security, it is better to draw it to bearer. After all, such a document can be easily mortgaged, donated, sold or executed as an inheritance. This allows for mobility of the contribution. However, one must be very careful not to lose this document, because even someone to whom it was not intended can use it.
It will not be superfluous to note such a minus as poor functionality. What is meant by this? The fact is that a savings certificate cannot be replenished the way it is done with a deposit. It cannot be transformed into a current account or partially cashed. In other words, receiving a gain in liquidity, certificate holders cannot claim technical innovations that deposits have. Therefore, before acquiring such a certificate, you need to weigh all the pros and cons.